Quintiles IMS Holdings (Q) has reported 10.89 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $99.17 million, or $0.82 a share in the quarter, compared with $111.29 million, or $0.89 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $120.56 million, or $1 a share compared with $117.58 million or $0.94 a share, a year ago.
Revenue during the quarter grew 5.08 percent to $1,497.17 million from $1,424.77 million in the previous year period. Gross margin for the quarter expanded 9 basis points over the previous year period to 28.90 percent. Total expenses were 88.79 percent of quarterly revenues, up from 88.28 percent for the same period last year. That has resulted in a contraction of 52 basis points in operating margin to 11.21 percent.
Operating income for the quarter was $167.77 million, compared with $167.02 million in the previous year period.
However, the adjusted operating income for the quarter stood at $198.99 million compared to $179.01 million in the prior year period. At the same time, adjusted operating margin improved 73 basis points in the quarter to 13.29 percent from 12.56 percent in the last year period.
"IMS Health delivered another consistent quarter of strong financial performance, and Quintiles delivered solid earnings with superior revenue growth in Product Development," said Ari Bousbib, QuintilesIMS chairman and chief executive officer. "Our recent debt offerings have provided us with a strong balance sheet and we are pleased that our board has authorized a new $1.5 billion share repurchase program. As we execute on our integration plans, we have visibility to additional cost reduction opportunities and are doubling cost synergies from $100 million to $200 million annualized savings exiting 2019."
For the fourth-quarter, Quintiles IMS Holdings projects revenue to be in the range of $1,950 million to $1,990 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.04 to $1.08.
Operating cash flow improves significantlyQuintiles IMS Holdings has generated cash of $412.95 million from operating activities during the nine month period, up 53.30 percent or $143.57 million, when compared with the last year period. The company has spent $81.85 million cash to meet investing activities during the nine month period as against cash outgo of $39.40 million in the last year period.
The company has spent $78.14 million cash to carry out financing activities during the nine month period as against cash inflow of $21.73 million in the last year period.
Cash and cash equivalents stood at $1,209.68 million as on Sep. 30, 2016, up 11.82 percent or $127.87 million from $1,081.80 million on Sep. 30, 2015.
Working capital increases marginally
Quintiles IMS Holdings has recorded an increase in the working capital over the last year. It stood at $1,023.18 million as at Sep. 30, 2016, up 2.71 percent or $26.98 million from $996.20 million on Sep. 30, 2015. Current ratio was at 1.63 as on Sep. 30, 2016, down from 1.65 on Sep. 30, 2015.
Days sales outstanding went down to 73 days for the quarter compared with 76 days for the same period last year.
Debt comes down marginallyQuintiles IMS Holdings has recorded a decline in total debt over the last one year. It stood at $2,435.61 million as on Sep. 30, 2016, down 1.73 percent or $42.93 million from $2,478.54 million on Sep. 30, 2015. Total debt was 58.99 percent of total assets as on Sep. 30, 2016, compared with 61.45 percent on Sep. 30, 2015. Interest coverage ratio improved to 6.85 for the quarter from 6.57 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
